Can you sell your house during bankruptcy in Ohio?
Yes, but not on your own timeline. Once you file, the house is part of your bankruptcy case, and the bankruptcy court has the final say. In Chapter 7, a court-appointed trustee decides whether the house will be sold, and Ohio’s homestead exemption protects a set amount of your equity ($182,625 per person for April 1, 2025 through March 31, 2028, according to the Southern District of Ohio Bankruptcy Court). In Chapter 13, you usually keep control of the house, but you need the court’s permission before you sell, and the trustee has to be part of the closing. Talk with your bankruptcy attorney before you sign a listing agreement or accept an offer.
By Michael N. Jones and Stacey L. Jones | The Jones Group with Keller Williams Living | November 6, 2026
If you are reading this, you may be carrying a lot right now: a bankruptcy filing you never wanted, a house that holds years of your life, and a stack of letters from people who want answers you do not have yet. Nobody plans for this part, and letting go of a home is hard even in the best of times (The Emotional Side of Selling). We want you to know that a bankruptcy does not automatically mean you lose your home, and it does not mean you cannot sell it. It means there are a few extra steps and a few extra people involved.
This guide explains how selling works in each type of bankruptcy, what a sale looks like in Northeast Ohio, and where we fit in. We are real estate agents, not attorneys, so please treat this as general information and not legal advice.
First question: which chapter are you in?
Almost every answer depends on this. Most individual homeowners file one of two types:
- Chapter 7 (liquidation). A trustee reviews what you own. Property that is protected by an exemption stays with you. Property that is not protected, including home equity above the exemption, can be sold to pay creditors.
- Chapter 13 (repayment plan). You keep your property and repay part or all of your debts through a plan, usually over three to five years, with payments made through the Chapter 13 trustee.
If you have not filed yet and you are deciding whether to sell first, that is a conversation for a bankruptcy attorney. When and how a sale happens can change what you keep, so it is worth getting advice before you list.
Selling a house in Chapter 7: the trustee is in charge
In Chapter 7, you generally do not decide whether the house is sold. The trustee does. According to Nolo’s guide to selling a home in bankruptcy, the trustee sells when your equity is larger than what state law lets you protect, but only if the sale will produce enough to cover the trustee’s costs and leave something for creditors. If there is little or no non-exempt equity, the trustee may not sell at all, and you may be able to keep the house if you keep paying the mortgage.
Here is how the math works, in plain terms. Equity is what the house is worth minus what you owe on it. Ohio lets you protect part of that equity through the homestead exemption in Ohio Revised Code 2329.66. The Southern District of Ohio Bankruptcy Court lists the adjusted amount as $182,625, effective April 1, 2025, and it adjusts every three years. The statute text on the state’s website still shows the original $125,000 figure, so ask your attorney which number applies to your filing date and whether a spouse who also files has a separate exemption.
If the trustee does sell, the trustee usually hires a real estate broker, and the court has to approve that hire. After the sale, the mortgage and other liens are paid from the proceeds, your claimed exemption is paid to you, and the rest goes to creditors. Nolo notes that the case can stay open until the sale closes, even after discharge.
Selling a house in Chapter 13: you can, with permission
Chapter 13 is different. You keep the house, so a sale is often your choice, but it still needs court approval. The American Bankruptcy Institute has published a clear summary: a Chapter 13 debtor must get bankruptcy court approval before selling property. Your attorney files a motion asking for an order authorizing the sale. It generally includes the contract, the price, proof of value, and where the money will go, and it is generally filed at least 21 days before the hearing, although courts sometimes shorten that. Any real estate agent or attorney who will be paid from the proceeds has to be approved too.
To give you a sense of what the court wants to see, the Southern District of Ohio publishes a local form for these motions. It asks for the sale price, the appraised value, the buyer’s name and any connection to you, the agent’s commission, estimated closing costs, each lienholder and payoff, and the net proceeds. It also says the closing agent must coordinate with the Chapter 13 trustee and get the trustee’s approval before closing. Our Cleveland, Akron, and Canton-area cases are in the Northern District of Ohio, which has its own local rules and forms, so the details here may differ. We could not confirm the Northern District’s current procedure online, which is one more reason to let your attorney lead.
What happens to the money depends on your plan. Proceeds often go toward the plan, and the plan may be paid off early. Whether you can keep a portion for moving costs or other needs is something the court decides on a request from your attorney.
Why not just list it and see?
Because selling without permission can create serious problems for you and the buyer. In an example the ABI describes, a homeowner sold without a court order, and the judge could have denied approval after the fact, which would have left the buyer with a title defect, or required the closing attorney and agent to return their fees. Failing to disclose a sale can also put your exemption and your sale proceeds at risk.
Our rule is simple. No listing agreement gets signed until your bankruptcy attorney has said the sale can go forward and told us what the court needs.
What a sale looks like in Northeast Ohio
The bankruptcy rules sit on top of the usual Ohio sale steps. Here is how it typically fits together (see also our overview of bankruptcy home sale services and what to expect from seller closing costs):
- Your attorney confirms the plan. Chapter 7 or 13, trustee contact, and what approvals are needed.
- Court approval for the agent. In many cases the court has to approve us before we are paid from the proceeds. We are glad to supply what your attorney needs.
- Price the home and list it. We run a market analysis so the price is supportable. Courts and trustees look at whether the sale price is fair.
- Review offers with your attorney. An accepted offer is usually conditional on court approval.
- Court approval of the sale. Your attorney files the motion and gives creditors the required notice.
- Title company closing. The title company handles the payoffs, the closing statement, and recording the deed. In a bankruptcy sale, the closing statement and net proceeds typically go to the trustee, and the trustee may need to sign off before closing.
- After closing. Your attorney reports the sale to the court and the case moves forward.
A few Ohio items still apply. In Ohio the seller usually pays the conveyance fee, which is based on the sale price and set partly by the county. We confirmed that Ohio counties may levy a conveyance fee under Ohio Revised Code 322.02 and that the grantor pays it, but we could not confirm each county’s current rate, so check the county auditor’s page for your county. Many Cleveland-area cities also require a point-of-sale inspection before the deed transfers, and the repairs it turns up can affect your net proceeds. We wrote a separate guide on that: Do You Need a Point-of-Sale Inspection to Sell Your Northeast Ohio House?. And unless an exemption applies, the seller still completes Ohio’s Residential Property Disclosure Form.
Does a short timeline change anything?
It can. If foreclosure is on the calendar, filing bankruptcy generally pauses it for a while (this is a general rule, so confirm with your attorney), but it does not end it, and the pause can be lifted. Selling can be a way to pay the mortgage off in full and walk away with whatever equity is left. If you are worried about a sheriff’s sale date, read our guide, Can I Avoid Foreclosure in Northeast Ohio?, and call your attorney this week. We will not pressure you to move faster than your situation allows.
Common misconceptions
“Bankruptcy means I automatically lose the house.” Not so. Many homeowners keep their homes, especially in Chapter 13, or in Chapter 7 when equity is within the exemption.
“I can keep all the money from the sale.” It depends. In Chapter 7 you receive your exemption. In Chapter 13 the proceeds may go to the plan.
“My agent can just handle it.” We can handle the sale. The bankruptcy side belongs to your attorney.
Frequently asked questions
Can I sell my house while in Chapter 7 bankruptcy?
The trustee controls any sale of non-exempt equity. If your equity is within Ohio’s exemption, the trustee may leave the house alone. Ask your attorney before listing.
Can I sell my house during Chapter 13 in Ohio?
Yes, with the bankruptcy court’s approval. Your attorney files a motion, the trustee is involved, and the closing typically has to coordinate with the trustee.
Do I have to tell my real estate agent I filed?
Yes. We need to know so we can follow the court’s process and make sure the sale does not create problems for you or the buyer.
What happens to the sale proceeds?
In Chapter 7, mortgages and liens are paid, your exemption is paid to you, and the rest goes to creditors. In Chapter 13, proceeds often go toward your plan. Your attorney can tell you what applies to you.
How long does a sale during bankruptcy take?
Longer than a typical sale, because of the court steps. One bankruptcy law firm says Chapter 13 motions are typically approved in 20 to 30 days, but timing varies by court and case. We cannot guarantee a timeline.
Do I need to fix the house first?
No. We sell homes as they are, in any condition. Any repairs a city’s point-of-sale inspection requires are a separate item to plan for.
What we could not confirm
To be upfront, we could not confirm these items from official sources: the Northern District of Ohio’s current local procedure for Chapter 13 sales, the current conveyance fee rate in each of the eight counties we serve, and whether the homestead figure applies to your filing date. Please verify with your attorney and the county.
Ready to talk it through?
Curious what your home is worth today? Get your free, no-pressure home value report at hmbt.co/cX7tGq, or if you’d rather talk it through, call Michael at 216.240.1147 or Stacey at 216.577.5874 for a no-judgment conversation. Any home, any condition, and never any judgment.
This article is general information and not legal, tax, or financial advice. Please talk with an Ohio bankruptcy attorney about your situation.
About the authors
Michael N. Jones and Stacey L. Jones lead The Jones Group with Keller Williams Living, helping Northeast Ohio families buy and sell homes since 2009. With 700+ homes sold, they specialize in downsizing, estate and probate, divorce, and as-is sales. Any home, any condition, and never any judgment. Michael brings an engineering background, and Stacey brings 24 years across healthcare, home building, and real estate.
The Jones Group with Keller Williams Living. Equal Housing Opportunity.
Proudly Serving Northeast Ohio
The Jones Group with Keller Williams Realty serves homeowners across Northeast Ohio, including Cuyahoga, Geauga, Lake, Lorain, Medina, Portage, Summit and Stark counties.
We work with clients in communities including Akron, Auburn, Aurora, Avon Lake, Bainbridge Township, Bay Village, Beachwood, Brecksville, Brimfield, Broadview Heights, Brunswick, Burton, Chagrin Falls, Chardon, Chesterland, Cleveland, Cleveland Heights, Concord, Copley, Cuyahoga Falls, Fairlawn, Fairview Park, Green, Hinckley, Hiram, Hudson, Kent, Kirtland, Lakewood, Litchfield, Macedonia, Mantua, Mayfield, Medina, Mentor, Middlefield, Mogadore Township, Montville, Newbury, North Olmsted, North Ridgeville, North Royalton, Northfield, Novelty, Olmsted Falls, Olmsted Township, Orange, Painesville, Parma, Pepper Pike, Ravenna, Richfield, Rocky River, Russell Township, Sagamore Hills, Shaker Heights, Solon, Stow, Streetsboro, Strongsville, Tallmadge, Thompson, Twinsburg, Uniontown, University Heights, Valley City, Wadsworth, and Westlake.
If you’re selling a home anywhere in Northeast Ohio, we’re here to help and walk you through the process, step by step.
